The Best Entertainment Era

Shahai Entertainment has really grown with low-cost horror films, which can also be said to be Relativity Entertainment's housekeeping genre. The success of Human Skin Inn has given Relativity Entertainment another popular horror film series.

Compared with commercial productions that are far from being able to reflect the best effects on small screens, horror films have always been popular in the rental market.

This type of film has extremely low requirements for playback hardware.

Today, dvd has become the mainstream of the offline market. Although many people still do not give up the habit of watching video tapes due to the number of VCRs in existence, the total rental income of video tapes in the North American market is not even one-third of that of dvds.

Compared with dvd players, the price of video recorders is a bit scary.

As early as 2002, the average price of video recorders in North America fell below $200.

VCRs imported from the other side of the Pacific Ocean are more competitive, which directly brings about the widespread popularization of DVD players in North America.

These also provide strong support for Netflix's online rental business.

Since the beginning of 2005, Netflix's business has grown astonishingly, and several Internet star businesses have been multi-pronged, attracting a large number of new users.

One thing that cannot be ignored is that as time goes by, computers and the Internet are highly pervasive in North America, and even the smartphone market is expanding.

Especially the Internet speed. Since the second half of 2004, the Internet speed in North America has been significantly faster.

Although I don’t know how many ranks behind the infrastructure madman on the other side of the Pacific Ocean, the bright future of the Internet has stimulated communication companies to actively invest.

While further improving the wired network, many communication providers are focusing on the mobile terminal.

There are already millions of smartphone users across the United States.

The industry is equally promising.

Someone once said that this is one of the best eras of the Internet, and too many giant Internet companies have developed after the Nasdaq stock market crash in 2000.

The industry disaster brought about by the stock market seems to have promoted a major reshuffle of the industry, allowing many companies to discard the bad and save the good, and later many superstar companies emerged.

Google, Amazon, and Netflix.

Affected by the continuous optimization of the overall environment, the smooth listing of overseas businesses, coupled with the stimulation of Netflix streaming media business and Netflix sharing and other services that meet the needs of social development, especially the Netflix streaming media business, a considerable number of ordinary users have transformed into Netflix. Fly monthly fee users.

In the first quarter of 2005, Netflix experienced explosive growth, achieving operating income of $787.99 million.

As Netflix announced its first-quarter financial report in April, more people began to pay attention to this Internet company.

After Netflix signed contracts with a number of large mobile phone manufacturers, it also negotiated new partners. Netflix officially signed an agreement with BlackBerry in mid-April, and related apps will also become pre-installed software on BlackBerry phones.

In addition, Netflix's performance in DVD sales is also extremely impressive.

After the success of Prison Break and Survival in the Wild, in order to meet the needs of users who lack sufficient Internet-on-demand hardware conditions, Netflix launched the rental and sales business of two episodes on the rental and sales platform.

Thanks to the explosive word-of-mouth and the speed of communication as a carrier of the Internet,

The dvd sales of these two episodes were astonishing, with sales of more than 30 million US dollars in North America alone.

DVD is now the most important income of film and TV, and the DVD profit of a considerable number of movies has exceeded the box office.

Many people even joked that the theater screening of a movie is just a super advertisement for DVD.

While Hollywood and related companies are still immersed in the rich returns brought by the DVD business, under Ronan's strong promotion, Netflix has actively expanded new businesses and prepared in advance for the decline of DVD.

Since 2005, with the popularity of home broadband and the substantial increase in network speed, Netflix has actively begun to transform into streaming media.

Netflix gradually provides users with the service of watching movies online, and fully supports viewing on various devices such as computers and mobile phones.

Rich content and good user experience have all contributed to the rapid development of Netflix's streaming media business.

The listing plan has also entered the final stage. After a long period of hard work, Netflix has reached an agreement on the key IPO rate issue with the company under Goldman Sachs that is responsible for the operation of the listing. agreed.

Google's listing last year also provided a reference for the IPO rate that Netflix needs to pay.

Today's Netflix is ​​also one of the most attractive Internet star companies in Silicon Valley.

Due to high enough estimates from the outside world, like Google before, Netflix has been haggling with Goldman Sachs on the rate, and the rate finally reached is basically the same as when Google went public.

This time the IPO fee is 2.8 percent, rather than the more typical 4 percent for IPOs that raise hundreds of millions of dollars.

Most IPO companies, and nearly all those that raise between $50 million and $200 million, pay the underwriters 7 percent of their IPO proceeds.

This is also inseparable from the fact that Goldman Sachs is extremely optimistic about the amount of funds raised this time.

Because Netflix will go public in dozens of days, Ronan also spared time to meet with potential investors one after another, together with Mark Randolph and others, accompanied by a professional team from Goldman Sachs.

It is not only to let them know more about Netflix's business and future, but also to increase the confidence of investors.

In fact, since the beginning of this year, Goldman Sachs has started a long-term ipo road show promotion plan.

When a company goes public, in order to stimulate demand, the company's top management and the underwriters hired to take the company public usually spend a very long time traveling from city to city to make investment pitches to institutional investors and answer questions. question.

If you want people to invest, you must let them see the prospect of making profits from the investment.

Last year, during Google’s IPO road show, the management refused to answer many questions from investors. As a result, many traditional investment institutions that don’t know much about the Internet are reluctant to predict Google’s future profitability in a positive direction.

Although Google's strength quickly hit the face, it is also recognized that Google's IPO did not meet expectations.

Due to the upcoming listing of Netflix, Ronan also increased his understanding of this aspect, and also focused on Google's IPO process last year.

Google's IPO did not meet expectations, which was related to the poor promotion of the road show and also had something to do with the underwriters.

Compared with the traditional IPO, Google used the auction model, which made traditional underwriters feel a huge threat. It was once rumored that Credit Suisse and Morgan Stanley, as underwriters, wanted to sabotage the auction.

According to Ronan's understanding, the lead underwriters don't want Google's auction model to succeed, but of course they don't want to fail for the sake of income.

In the end, Google's ipo did not meet expectations, raising only $1.9 billion.

Similarly, Google's IPO sale of shares accounted for only 8% of the company's shares.

Compared with Google when it went public last year, Netflix's performance and scale are not bad.

Google is the leader in the Internet search business, and Netflix is ​​also a well-deserved overlord in their respective industries in terms of DVD rental and sales, social sharing and streaming media business.

On the other hand, Google’s post-IPO performance will also have a positive impact on Netflix. After all, those who invested in Google last year, including Ronan, all made huge profits.

In a recent communication meeting, Goldman Sachs conservatively estimated the total market value of Netflix after listing at US$35 billion.

The stock price setting before any company's IPO will not remain unchanged and will be affected by many factors.

Because the underwriters, the company's own business, and investors all change, the listing price setting may change at any time.

Mr. Anderson, are you ready?

In the reception room of the Relativity Building, Lloyd Blankfein, the chief operating officer of Goldman Sachs Group, smiled and said to Ronan: In a few days, you will become the youngest billionaire in the United States.

Ronan's mentality was fairly stable, and he deliberately spread his hands and said, If Netflix's stock cannot be sold, it will be embarrassing.

Lloyd Blankfein laughed: I can guarantee that Netflix's stock will be snapped up by buyers.

Ronan added: It's the last preparation period, I hope there will be no accidents.

No. Lloyd Blankfein put away his smile and said very seriously: Goldman Sachs does not allow accidents.

He turned to Ronan and asked, What about your plan? How is the preparation going?

Ronan nodded slightly: It's all ready, once Netflix goes public, it will launch immediately.

Boosting Netflix's stock price and increasing Netflix's market value will not only enhance investors' confidence, but also prepare for the continued expansion of Relativity Entertainment.

Lloyd Blankfein further asks: Is the streaming business ready for something?

Ronan said directly: You can rest assured about the content production of Relativity Entertainment.

Lloyd Blankfein thinks about the relevant materials he has read. Since the beginning of the new millennium, Relativity Entertainment is the most trustworthy content production provider in Hollywood and in the world in terms of commercial film and television production. business.

Prison Break and Wilderness Survival on Netflix streaming media have also proved that, as a traditional producer of relativity entertainment, the content produced is also applicable to the Internet.

Moreover, in terms of Internet promotion, Relativity's entertainment tricks cannot be described simply as excellent.

In the eyes of Lloyd Blankfein, Relativity Entertainment is a traditional film and television company with profound Internet genes. Ronan Anderson is also a rare investor and decision maker in Hollywood and even in the United States who has a long-term vision for the development of the Internet industry.

The final sprint stage before Netflix's listing has arrived, and then Robert Iger and Mark Randolph have also joined the negotiations.

Ronan has been extremely busy during this period. As Netflix's true boss and decision-maker for future development, he cannot be absent from many important promotional occasions.

So that it wasn't Tom Cruise who came over, and Ronan forgot another important thing.

You are obviously unqualified as the owner of a football club. Tom Cruise said directly to Ronan: The team doesn't feel your attention.

He reminded Ronan: The European football leagues have come to an end.